**Executive Summary**
This document contains the Reserve Bank of India's (RBI) Amendment Directions, 2025, concerning Non-Banking Financial Companies (NBFCs) undertaking financial services. The directions, effective December 05, 2025, modify existing Master Directions. These changes were made after stakeholder consultation and consideration of feedback and address NBFC group entities of Scheduled Commercial Banks.
**Key Points / Main Content**
* **Title and Scope:**
* The directions are called the Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) (Amendment) Directions, 2025.
* They modify the existing Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) Directions, 2025 (Master Direction).
* **Effective Date:**
* The provisions come into effect from December 05, 2025.
* **Amendment:**
* A new section “H. Guidelines for NBFC Group entities of Scheduled Commercial Banks:” is inserted after paragraph 60 of the Master Direction.
* **Guidelines for NBFC Group Entities:**
* NBFCs that are group entities of a Scheduled Commercial Bank must also adhere to the applicable provisions stipulated under the Reserve Bank of India (Commercial Banks – Undertaking of financial services) Directions, 2025, as updated from time to time.
* This applies if a particular business/activity is being undertaken by both the NBFC and its parent bank.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
* **Impact:** NBFCs, particularly those that are part of a Scheduled Commercial Bank group, are now subject to additional guidelines.
* **Action Required:** NBFCs that are group entities of Scheduled Commercial Banks need to comply with the provisions of the Reserve Bank of India (Commercial Banks – Undertaking of financial services) Directions, 2025, in addition to the existing Master Directions, when the business/activity is being undertaken by both.
**Stakeholder: Scheduled Commercial Banks**
* **Impact:** Parent banks of NBFC group entities are indirectly affected as their NBFC subsidiaries must adhere to additional regulations.
* **Action Required:** Banks with NBFC subsidiaries need to ensure their subsidiaries comply with the new requirements and the Reserve Bank of India (Commercial Banks – Undertaking of financial services) Directions, 2025.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial Services) (Amendment) Directions, 2025: The primary directive being issued by the Reserve Bank of India.
Reserve Bank of India Act, 1934: Act under which the power to issue the directions is conferred to RBI.
Reserve Bank of India: The issuing regulatory body.
directions on Financial Services provided by Banks in 2016: The original document replaced by the master directions
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/DOR/2025-26/138
DOR.RAUG.AUT.REC.No.343/24.01.041/2025-26 December 05, 2025
Reserve Bank of India (Non-Banking Financial Companies – Undertaking of
Financial Services) (Amendment) Directions, 2025
Reserve Bank had earlier issued directions on Financial Services provided by Banks
in 2016, since replaced by entity-wise Master Directions issued on November 28, 2025
- Reserve Bank of India (Non-Banking Financial Companies – Undertaking of Financial
Services) Directions, 2025. A review of some provisions contained in the earlier
instructions was carried out and a draft circular was placed on the website on October
04, 2024.
2. Taking into account the feedback received and consultation held with the
stakeholders and in exercise of the powers conferred by Section 45(L) and Section
45(JA) under Chapter IIIB of the Reserve Bank of India Act, 1934, and all other laws
enabling the Reserve Bank in this regard, the Reserve Bank being satisfied that it is
necessary and expedient in the public interest so to do, hereby issues the Amendment
Directions hereinafter specified.
3. These Directions shall be called the Reserve Bank of India (Non-Banking Financial
Companies – Undertaking of Financial Services) (Amendment) Directions, 2025.
4. The provisions shall come into effect from December 05, 2025.
5. These Amendment Directions modify the Reserve Bank of India (Non-Banking
Financial Companies - Undertaking of Financial Services) Directions,
2025 (hereinafter referred to as ‘Master Direction’) as under:
(i) After paragraph 60 of the Master Direction, the following shall be inserted:
“H. Guidelines for NBFC Group entities of Scheduled Commercial Banks:
60A. In addition to the above directions, those NBFCs which are group entities of a
Scheduled Commercial Bank should adhere to the applicable provisions stipulatedunder Reserve Bank of India (Commercial Banks – Undertaking of financial services)
Directions, 2025, updated from time to time, in case a particular business/activity is
being undertaking by both the NBFC as well as its parent bank. “
(Manoranjan Padhy)
Chief General Manager
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